Diversion of Russian fuel oil stocks from Europe to Sinagpore have pushed up stocks in the city's oil hub to the highest level in nearly two years and clouded the price outlook for the commodity used in shipping, power plants and refining, Reuters reports.
Thanks to continued low global prices of crude, refining margins have been lifted and production of fuel oil has been boosted, the news service said.
Surpluses in Europe have led to fuel oil being diverted to Singapore, according to the report, which cited traders as saying that they were sometimes blending better-quality stock into low-grade marine fuel oil.
Fuel imports to the city-state from Russia grew by around 200 percent in the first quarter of 2015 to 4 million tonnes, when compared to the same period a year ago, according to the report.
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